Distinguish between product and period costs

Distinguish between product and period costs - company...

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Distinguish between product and period costs. Product costs are costs that are a necessary and integral part of producing the finished product. Product costs are also called inventoriable costs. Under the matching principle, these costs do not become expenses until the
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Unformatted text preview: company sells the finished goods inventory. Period costs are costs that are identified with a specific time period rather than with a salable product. These costs relate to nonmanufacturing costs and therefore are not inventoriable costs....
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